Trump Asks China To Reduce Their Trade Deficit And Stop Intellectual Property Theft
This week, the President slapped tariffs on steel and aluminum imports to enhance domestic steel production, to the dismay of liberal economists and journalists who don’t understand history and common sense.
Here at this editorial we are unabashedly pro-tariff, not only because they work, but because without them we lose control of important aspects of our economy and of our society as a whole.
Needless to say, we believe these steel tariffs is welcomed news.
Aside from the tariffs though, President Trump has also now asked China to reduce their trade deficit with the United States by 100 billion dollars this year.
China has been asked to develop a plan for the year of a One Billion Dollar reduction in their massive Trade Deficit with the United States. Our relationship with China has been a very good one, and we look forward to seeing what ideas they come back with. We must act soon!
— Donald J. Trump (@realDonaldTrump) March 7, 2018
The tweet actually understates the request by $99 billion, but let’s move on.
The trade deficit is a problem. We’ve written many articles outlining exactly why that is. In short, the trade deficit causes domestic unemployment, increases inequality, lowers domestic standard of living, and makes us weaker politically and less free.
For a more detailed analysis, read our comprehensive piece on how the trade deficit harms the economy.
By getting China to address our trade deficit, it creates an impetus for them to start trading fairly. Whether this means reducing imports on American cars or allowing foreign ownership of their factories it doesn’t matter, because whatever measures they take will invariably help the United States in one way or another.
And for anyone who fears retaliatory tariffs, much like it doesn’t bother China, this shouldn’t bother us since the industry itself is more important than the cheap products.
Another giant problem with trade with China is the gross intellectual property theft they commit. America loses $500 billion annually from international intellectual property theft, and China itself is responsible for $360 billion of this.
President Trump recognizes this issue and let out another tweet showing, if nothing else, his awareness of the problem.
The U.S. is acting swiftly on Intellectual Property theft. We cannot allow this to happen as it has for many years!
— Donald J. Trump (@realDonaldTrump) March 7, 2018
This isn’t new, as the White House has been commenting on this problem since August. However, this is one of many campaign promises that President Trump intends on keeping. Let’s hope he is successful.
